There is a lot of buzz around the world about digital currencies like Bitcoin, Ethereum etc. But recently, new tech has been trending in the digital world is NFT, but What NFT means? Basically, NFT stands for Non-Fungible Tokens.
You may think it is another type of digital currency which you can buy and sell like other currencies, but it’s not. So let’s see what NFT is and how it is different from digital currencies in this NFT-explained article.
What NFT means?
NFT stands for Non-Fungible Tokens; these are digital assets containing ownership information for unique digital items like digital art, music, video, or anything. Even Tweets can be converted into NFT and traded in the NFT market; some people are trading memes here as well.
NFT vs Cryptocurrency
In a nutshell, NFT is a Non-Fungible Tokens that uses a certificate of authenticity of digital assets, making it unique and rare.
On the other hand, Cryptocurrencies are Fungible tokens that are entirely exchangeable with each other and have the same value (if not compared to their market value change).
Both use the same Blockchain technology, but what is blockchain? I will fix it up for you; it is a chain of blocks that contains information that is then duplicated and distributed across the entire network to prevent change, hacking, or cheating in the system. It’s full-proof, to be honest.
How do NFTs work?
Mostly, NFTs are part of the Ethereum blockchain that is also used in ETH coins. NFTs are designed to filter the authenticity of tangible or intangible assets that can’t be copied.
In simple terms, when you mint your digital artwork to an NFT, it attaches a unique token to that artwork that stores all the necessary information to ensure its authenticity.
Every token minted on the artwork has a unique identifier; this allows the original owner to be verified through blockchain technology.
If you are wondering what Mint refers to, it is the process that is called when digital art becomes part of an Ethereum blockchain.
Why do we need NFTs?
NFT can’t be copied, and the buyer gets legit digital art that is only one direction from the artist. Moreover, you don’t just get the first copy; you own the rights to the art, from its raw file to production. In this way, the art value helps the artist directly, unlike the real world where an artist has to do many things to protect their original work.
How to buy NFT tokens?
In a short time, NFT tokens have been very popular, and there are many Marketplaces where you can buy and sell NFTs, like Raible, OpenSea etc. They all are popular are safe to use these websites.
First, you need to have ETH coins to start buying or selling the NFT on these websites. Then, register on these websites, and you are ready to go. It works the same as any other eCommerce website like Amazon.
Future Of NFTs
This is one of the major questions right now, What will be the future of NFT? Will it be successful like Bitcoin, or is it the next bubble-like Dogecoin?
Currently, the NFT marketplace is expanding rapidly. For example, Mike “Beeple” Winkelmann, a Digital artist, sold “Every Day: The First 5000 Days” digital art for about $69.3 Million. Isn’t it insane? We don’t exactly know what the future will be like, but digital art is considered even more than physical art nowadays. It may be the beginning of a Digital-verse where people can show their digital collections to the world, or it might end like any overly-excited tech. Let’s see.
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